KQ Article

TAKING THEIR SIDE
Suffolk City National Bank (SCNB) Riverhead, New York

Anita Nigrel, Senior Vice President of Retail Banking at Suffolk County National Bank (SCNB), believed her bank could improve its relations with small business customers. It just needed a framework for getting started.
 
Deluxe Gathering Stories^SM (see sidebar) provided precisely the framework the bank needed. SCNB piloted the Gathering Stories tool through the Deluxe Small Business Collaborative, a program designed to help banks and credit unions foster greater loyalty with small businesses. According to Nigrel, Gathering Stories challenged her bank’s preconceptions of how financial services professionals should approach relationships with this critical customer segment.

“It reminded us of the tremendous value that comes from connecting emotionally,” Nigrel said. “Small business    owners are usually hesitant to speak candidly with financial institutions, because they worry we’ll turn down their business if we see vulnerabilities. But we were amazed to discover that by simply asking about their dreams and concerns, they’re more than willing to let down their guard and provide valuable information that we can use to serve them better.”

SCNB employees were initially skeptical about the new approach. “Most told me that they were already asking the right questions and that Gathering Stories wasn’t necessary,” Nigrel said. “So, I decided to let employees see firsthand just how much deeper they could go.”

Nigrel asked each branch manager to conduct the storygathering exercise for the small business customer he or she knew best. Almost unanimously, these branch managers reported learning more about this customer in that single session than they had over the last several years. “This exercise really got buy-in from our employees, and now they would never go back,” Nigrel said. “Gathering Stories has become second nature.”

SCNB also followed the Gathering Stories recommendation to sponsor networking meetings. The bank began by scheduling quarterly events, held at SCNB branches and moderated by SCNB management, for small business owners to discuss issues and concerns. According to Nigrel, these events have since assumed a life of their own.

“Everybody wanted to meet more often, and several new groups have now spun off — some offsite and without our being directly involved,” said Nigrel “All of this networking benefits our bank as much as our customers, because it positions SCNB as the facilitator of these valuable connections and expands our value well beyond financial services alone.

“We’re now the first people our small business customers call with an issue,” Nigrel added. “Looking back, it’s amazing that all of this was set into motion by simply changing the tone of our conversations.”

TANGIBLE RESULTS
Coppermark Bank Oklahoma City, Oklahoma

While Coppermark Bank was busy launching a new division dedicated to serving small businesses, Deluxe was launching the Small Business Collaborative. Coppermark joined the program, and piloted Gathering Stories as a means to better understand and serve small business owners.

The process was eye-opening, said Pat White, Senior Vice President and Director of Retail Banking. “We conducted a survey and heard repeatedly that banks are seen as ‘big gray buildings full of people who judge and reject you,’” she said. “We were surprised and a bit embarrassed that small businesses perceived us this way.”

White realized that placing too much emphasis on selling products — and not enough on getting to know customers personally — had created this undesirable distance and distrust.

“With Gathering Stories, we learned how to go one level deeper in understanding the needs of small business owners,” White said. “And we immediately discovered that these people were starved for these types of discussions. They really opened up when we moved away from guarded bureaucracy to a more natural flow of conversation.”

White says that Gathering Stories has also benefited Coppermark employees. “They’re able to position themselves as partners, not adversaries, which fosters incredible loyalty,” she said. “Plus, they’re better at what they do because they ask the right questions for understanding each client’s unique needs. This has had a staggering positive impact on our bottom line.”

Since adopting Gathering Stories, the Business Banking Division of Coppermark Bank has achieved annualized growth of more than 17 percent in small business core deposits, along with a 44 percent increase in small business loans and more revenue from existing small business clients.

Gathering Stories has also inspired Coppermark to host small business networking groups. “Historically, we’ve been overly concerned about the liability issues involved with connecting our clients to specialists in areas outside financial services,” White says. “But now that we’ve positioned ourselves as a partner, we can make the introduction and get out of the way. Our small business clients truly appreciate this level of service.”

_{© 2012 Deluxe Enterprise Operations, Inc.}